Virgin targets growing segment with new loyalty program

Virgin targets growing segment with new loyalty program
By Alexandra Coulton


Virgin Australia is zeroing in on small to medium-sized business (SME) customers with the launch of a new rewards program called Virgin Australia Business Flyer.

The new program is free to join and gives members further discounts on both airfares and Lounge memberships based on a three tiered system, awarding points to the individual as well as their business.

Businesses can reinvest or transfer points to the personal Velocity Frequent Flyer account of a staff member, allowing members to double-dip on points to redeem on flights, upgrades, hotels, car hire, through partners or for purchases at the Velocity e-store.

Each Virgin Australia Business Flyer member will sit within three new loyalty tiers, giving members immediate access to up to six per cent off the base ticket fare.

Tier 1 – $0-$9,999 flight spend per annum

  • Earn 1 point per $1 spent on eligible flights.
  • An additional 4 per cent off Flex Economy fares and 6 per cent off Business Class fares.
  • $379 discounted Virgin Australia Lounge Membership.
  • Two Pilot Gold Memberships for three months when they spend at least $2,000 on flights in the first three months of joining.

Tier 2 – $10,000-$49,999 flight spend per annum

  • Earn 1.5 points per $1 spent on eligible flights.
  • An additional 4 per cent off Flex Economy fares and 6 per cent off Business Class fares.
  • $379 discounted Virgin Australia Lounge Membership.
  • Other exclusive benefits and offers.

Tier 3 – $50,000-$300,000 flight spend per annum

  • Earn 2 points per $1 spent on eligible flights.
  • An additional 4 per cent off Flex Economy fares and 6 per cent off Business Class fares.
  • $379 discounted Virgin Australia Lounge Membership.
  • More exclusive benefits and offers.

Virgin Australia Group CEO Jayne Hrdlicka said the Virgin Australia team has been working hard over the last 15 months to re-imagine the best way to bring value to this part of its customer base.

“Today’s announcement is the beginning of our journey to add even higher levels of value to this community and ensure that we fiercely compete for our fair share of our heartland customers,” Hrdlicka said.

“There is no other Australian airline that offers a free rewards program for businesses, lounges in every capital city, three types of domestic seating choices including Business Class, jet services to hundreds of destinations around the country, and all the bells and whistles at such an excellent value-for-money price point.

Last week the airline announced it would reduce its Business Class fares by up to 60 per cent compared to pre-COVID levels, seeing some  one-way domestic Business Class fares available from as low as $299 one-way, with savings of over $500 one-way on selected routes.

On top of this, Hrdlicka said an independent airfare study released in July 2021, revealed Virgin’s economy fares were up to 67 per cent cheaper.

“With the additional airfare discounts we are offering under the Business Flyer loyalty program, on top of Velocity Points earn for businesses, it’s going to be very hard for any business owner to look past Virgin Australia when choosing a domestic airline partner,” she said.

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